An electric-car company with mysterious funding is moving forward on its factory

A
man walks by a sign at an event for Faraday Future, Wednesday,
April 13, 2016, in North Las Vegas, Nev.AP Photo/John Locher

Electric-car company Faraday Future (FF) says it's getting
equipment ready for the construction of its new factory in North
Las Vegas, Nevada.

But officials in Nevada say that the proper permits have not yet
been granted, and one has expressed doubts to Business Insider
that the project will come to fruition.

What FF says it's doing now

A statement from the company on Monday mentions:

Heavy equipment will arrive at the site next month

Construction company AECOM will spearhead work on the project

Staff will work out of an office inside North Las Vegas City
Hall.

But while the statement says crews will begin grading land at the
site in late June, North Las Vegas spokesperson Delen Goldberg
tells Business Insider the grading permits have not yet been
approved.

"There is no general timeline for how long such permits take,"
Goldberg said in an emailed statement. "In this case, the city is
waiting on a couple of documents from Faraday."

Goldberg said once those documents are submitted, the city would
review them and make a decision on the permits "within a couple
of days."

FF held a ceremonial groundbreaking for its planned
900-acre, $1 billion factory in Nevada last month. Shortly
after the event, FF told Business Insider that it finalized deals
to buy that land, but declined to reveal how much it paid.

Jia
Yueting, co-founder and head of Le Holdings Co Ltd, also known as
LeEco and formerly as LeTV,REUTERS/Jason Lee

In previous conversations with Business Insider, FF has said that
Jia is personally backing FF.

The privately held company hasn't disclosed any other investors.
FF has told Business Insider in several conversations that a
"diverse" funding structure was in place.

The claim was echoed in a letter Jia sent to Nevada lawmakers in
March.

The letter, which Business Insider has viewed, read in part:
"While I am personally backing FF, there is also a diverse
funding strategy to help us fully realize our mission and
vision."

A document released from a Nevada public agency last week
sheds more light on the nature of FF's dealings.

The document from the Southern Nevada Water Authority shows that,
as of March, Jia Yueting held a 94% stake in a limited-liability
company that purchased land on behalf of FF. Nevada in December
granted FF hundreds of millions of dollars in tax incentives for
the factory project.

The nature of FF's funding structure has worried Nevada state
treasurer, Dan Schwartz, who is responsible for approving some
tax incentives related to the factory deal.

Those concerns stem from Jia's apparent close relationship with
the company.

The Wall Street Journal reported earlier this month that Jia has
put up shares of his Beijing-based, publicly traded company —
Leshi Internet Information & Technology —
as collateral for personal loans, and that Jia uses that
money to fund his businesses.

A Nevada state official with knowledge of the FF factory deal
tells Business Insider that there are significant doubts about
whether FF can truly bring its ambitious plans to fruition.
However, the project still appears to enjoy the full confidence
and support of Nevada Gov. Brian Sandoval and North Las Vegas
Mayor John Lee.

Lee, who helms the city where FF's plant is to be built — and
were some 4,500 jobs are expected to be created — said at last
month's groundbreaking ceremony, "We plan to succeed."

In a statement to Business Insider last week, FF spokeswoman
Stacy Morris said "Our business continues to grow steadily."

FF is now vying for 150 acres in the city of Vallejo in Northern
California, where it's planning a second plant on the site of a
former US Navy shipyard.